Fitch cuts AU Optronics

As part of an Asia-Pacific Technology sector-wide review, Fitch Ratings said it downgraded AU Optronics Corp.'s long-term foreign- and local-currency issuer default ratings to BB- from BB+ and national long-term rating to BBB(twn) from A-(twn).

The outlook has been revised to negative from positive.

The downgrade reflects the company's significantly weakened operational performance in the second half of 2008 and the view that the economic turmoil will be protracted until at least midway through 2010, Fitch said.

Fitch said it expects the company to face continuous challenges in the next several quarters, as a result of pricing pressures from downstream product vendors and weakened demand in light of the global economic recession.

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